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Japan Inflation At New Low Since War On Falling Prices Began - Yahoo News

- Sluggish spending - On Friday, Kuroda insisted that an expected recovery in oil prices -- they have dropped by about half since the summer -- will help the BoJ get its inflation target back on track. View gallery Japan's inflation rate has fallen to its lowest level since just after Tokyo launched a high-pro "As the effects of declining crude prices dissipate, the two-percent inflation target is likely to be achieved," the BoJ chief told the National Press Club. The perennially optimistic central banker -- who signed a press club guestbook with a Japanese saying about making good on one's promises -- added that Japan's annual labour negotiations were likely to usher in pay hikes. That, in turn, would lead to a boost in spending and price hikes, Kuroda said. Still, the redirected data on Friday were certain to boost speculation that the BoJ will be forced to expand its monetary easing campaign sooner than later to counter the downturn. "Currently, 80 percent of private-sector economists expect additional easing by the end of the year," SMBC Nikko Securities said go!! in a note. "We expect additional easing will come official website in late April." The inflation data were among a mixed bag of figures published Friday including a better-than-expected expansion in factory activity, but analysts warned that the uptick was likely to fizzle in the coming months. Separately, the internal affairs ministry said household spending fell a greater-than-expected 5.1 percent from a year ago, as the sales tax hike to 8.0 percent from 5.0 percent weighed on shopping nationwide. The jobless rate last month ticked up to 3.6 percent from 3.4 percent in December. Read more: http://news.yahoo.com/japan-inflation-lowest-since-war-falling-prices-began-030211000--finance.html